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Introduction.

This article is intended for both those people who are looking for someone to provide them with financial aid; as well as anyone fortunate enough to have spare funds and capable of providing financial aid to others. If you’re not already aware you don’t actually have to be a bank or licensed finance company to lend money from or apply to borrow money from.

Social lending.

Run an internet search for the term ’social lending’ and you’ll see listed several what are collectively known as social lending clubs through which you can lend or borrow money according to your means. The social lending club itself is registered with the financial authorities and completely above board; of course when selecting a social lending club do satisfy yourself that it is a 100% bona fide one. Unlike a conventional bank or finance house these websites are made up of individuals, and small groups of individuals, who are prepared to invest their money as loans to other people. These financial aid websites work the same way as any other social media website by connecting together people; those with money to lend and those seeking to borrow money.

Online loans.

Whether you’re the lender or the borrower providing or getting an online loan via social lending is simple. Everyone registers with the social lending club website and agrees to have a credit score check. The reasons for this are simple; the social lending club website needs to be sure that lenders have the funds and that borrowers are not habitual loan defaulters. After that the borrowers post how much they want to borrow and why, then the lenders make an offer according to how much they can lend and the rates available. Interets rates and repayment periods can vary according to how much is required and and the borowers credit history. Don’t worry too much if as a borrower you have a poor credit score, there’ll probably still be lenders willing to work with you on a social lending website.

International social lending.

In the news again this week is how the G20 nations are yet again dragging their feet on funding the billions of dollars promised to developing nations. If you have money to invest as loans there’s no reason at all why you can’t use at least some of it to finance overseas loans. The rates of interest and repayment periods are exactly the same as those for USA loans. However, on a dollar-for-dollar basis making an international loan to help get a business venture off the ground in Africa or Asia could be both immensely rewarding and yet be virtually a philanthropic gesture from you.

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